First Elite Capital Modaraba reported a significant deterioration in its financial performance for the nine months ended March 31, 2026, with its loss after taxation widening to Rs6.05 million, compared with a loss of Rs0.95 million recorded in the same period last year.

The financial results were disclosed in the company’s unaudited interim statements for the period. According to the filing, the Board of Directors recommended no cash dividend, bonus shares, right shares or other corporate action for the period.

Income shows modest growth

Despite the higher overall loss, First Elite Capital Modaraba managed to increase its total income during the nine-month period. Income rose to Rs34.69 million, compared with Rs33.26 million in the corresponding period of 2025.

Income from Ijarah financing remained the largest contributor, reaching Rs32.10 million, up from Rs28.22 million a year earlier. The company also recorded Rs1.78 million in return on investments, compared with Rs4.55 million in the same period last year.

However, higher operating expenses more than offset the improvement in income.

Operating expenses weigh on results

Total expenses increased to approximately Rs40.31 million during the nine months, compared with Rs33.79 million in the previous corresponding period. Depreciation of assets leased out under Ijarah contracts increased to Rs23.85 million, while administrative and general expenses rose to Rs14.17 million.

As a result, the company recorded an operating loss of Rs5.62 million, compared with an operating loss of only Rs533,523 in the same period last year.

After accounting for levy, First Elite Capital Modaraba’s loss before and after taxation stood at Rs6.05 million, compared with Rs949,274 a year earlier. Earnings per certificate also declined to a loss of Rs0.53, from a loss of Rs0.08.

Fourth-quarter performance also remains challenging

The company’s performance in the quarter ended March 31, 2026 was also under pressure. Quarterly income stood at Rs10.43 million, slightly below Rs10.72 million recorded in the same quarter last year.

Quarterly expenses climbed to Rs13.40 million, resulting in an operating loss of around Rs2.97 million. The company ultimately reported a quarterly loss after taxation of Rs3.02 million, compared with a loss of Rs289,646 in the corresponding quarter of 2025.

Asset base remains substantial

As of March 31, 2026, First Elite Capital Modaraba reported total assets of approximately Rs229.75 million, compared with Rs232.35 million at June 30, 2025.

The company’s non-current assets included Rs116.13 million in assets leased out under Ijarah contracts and Rs65.55 million in investment property. Cash and bank balances also improved considerably, reaching Rs19.82 million, compared with Rs8.27 million at the end of June 2025.

Cash position improves

The cash-flow statement shows that the company generated Rs22.12 million from operations before payments for Ijarah assets and other operating outflows. However, after these payments, net cash used in operating activities stood at approximately Rs5.51 million.

Investing activities generated around Rs17.06 million, helping support the company’s liquidity position. Overall, cash and cash equivalents increased by Rs11.55 million during the nine-month period, ending at Rs19.82 million compared with Rs8.27 million at June 30, 2025.

Overall, First Elite Capital Modaraba’s latest results highlight the pressure created by rising operating costs and investment-related losses. While its income and cash position showed some positive developments, the sharp increase in its nine-month loss indicates that controlling expenses and improving operating efficiency will remain important for the company going forward.